Intel Corporation is mostly known for manufacturing silicon chips for computers. Answer the following questions using the company’s Form 10-K for the period ended December 31, 2012. The Form 10-K can be accessed through the “Investors Relations” link on the company’s website at or through the EDGAR system (see Appendix A at the back of this text for instructions). Read the following sections of the 10-K: “Company Overview” and “Company Strategy” on pages 1 and 2, and “Inventories” on page 52.

a. Is Intel a manufacturing or service business? Explain.
b. Based on your response to Requirement a, what types(s) of inventory, if any, do you expect Intel to have? Explain.
c. What types of inventory did Intel disclose in its Form 10-K, and what were the dollar amounts of these inventories for 2012 and 2011?
d. What are some of the cost drivers that Intel might use to allocate common costs to the various products it produces?

  • CreatedFebruary 07, 2014
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